Most small business owners plan their New Year’s revenue goals in January. It makes sense extemporary but, why be concerned about a new year even before it arrives? The dilemma about planning revenue goals in January is that most entrepreneurs find themselves already behind generally. The truth is a successful business year starts beforehand on the New Year’s Eve. Moreover, business sales start falling towards the year end and rising again in January.
Following this, end of the year is the perfect time to plan your revenue goals for the following year. This way you can also easily implement your business plan at the start of the New Year. Below mentioned tips will help you to benefit from business planning in November.
Establish Data-Driven Culture
Successful companies like Facebook and Walmart has established data-driven culture to achieve success which most small business owners has clean forgotten in the recent years. The concept of data-driven culture is to collect data and information and use the same to your advantage to improve business performance.
CIO.com reported a key study where it was established that successful corporations prioritize their data collection use the same data to improve their business operations. Also, these successful companies make the data readily available to employees by democratizing it.
You don’t need to be a new Walmart to cash in on the data. You just need to adapt data-driven culture and conduct an easy survey of your market standings at the end of the year. Using the same data you can make new offerings/promotions to meet your market needs. This way you can run a successful business by boiling down the guessing game. Rather, you use the data facts and plan your revenue goals for the forthcoming year.
Follow Your Business Finances
Obviously, you will review your business finances at the end of the year and have a detailed discussion with your accountant. This will cover reviewing your current year revenue, business tax planning and vital business purchases to be made.
Use the opportunity and consult your forthcoming revenue goals with your accountant. He will assist you in concluding the offerings/promotions that can make a profit, and planning for any likely financial problems that may come about.
Do Risk Assessment
Risk assessment is an integral part of business planning and it helps in managing any likely difficulties that could possibly hamper your goals achievement strategy. Unluckily, most businesses are allured to skip this integral planning part. Realizing what could possibly go wrong is the only way entrepreneurs can develop solutions and substitutes beforehand. If not, there will be chances of having their plans spoiled by surprise obstacles.
Houston Chronicle’s Small Business section suggested that risks may arrive in a business in numerous ways including new competition, uncertain market, a natural catastrophe, monetary, marketing and operational.
Analyze What Worked & What Didn’t
Business expansion requires detailed analysis and comparison of how well your business was performing in the last year with current year performance. Therefore, it’s essential to analyze what worked and what didn’t. You can review what offerings/promotions made you profit and what not, your customer service, successful launch, failed projects, investment on different things. The key is to assess these things before you plan your forthcoming year.
In slow business season, take the time and develop a solid revenue plan for the coming year. By using the collective data, risk assessment and creating a analysis you can easily grow your small business.